Business / Less flight disruption and compensation payouts help to boost Loganair’s profits
LOGANAIR saw its pre-tax profits rise by nearly £4 million in 2024/25 – with less delays, cancellations and compensation pay-outs highlighted as some of the reasons why.
Profit before tax in the year ending 31 March 2025 was £11 million, compared to £6.9 million the year before.
Loganair’s accounts said this was driven mainly by a “transformative shift” to deliver stable operations.
This was particularly felt in Shetland and other island communities, with Loganair’s new CEO Luke Farajallah stating he was keen to restore reliability to operations when he took up post in 2024.
One early move was to cut some routes from Loganair’s wider network outside the isles in a bid to stabilise the daily flying programme.
While pre-tax profit was up, turnover was down from £264.1 million in 2024/25 to £253.1 million.
The accounts also showed that 1.362 million passengers were carried across Loganair’s network in 2024/25, compared to 1.52 million in the previous year.
Flight hours were also down, from 49,536 in 2023/24 to 43,775 in 2024/25.
The documents said the challenge of global supply chain shortages affecting availability and overhaul times for aircraft, spare parts and key components such as engines and landing gears continued into 2024/25.
“The airline has taken some decisions to invest proactively in some components and parts known to be in short supply,” it added.
“This has, to some degree, mitigated the impact of the supply-chain problems, many of which are not expected to abate fully until late 2026 or even 2027.
“The airline is determined not to allow external factors to blow it from the course of delivering stable and reliable regional operations.”
CO2 emissions for 2024/25 amounted to 105,717 tonnes across 55,564 flights, which compared to 138,797 tonnes over 62,370 flights in 2023/24.
Meanwhile Loganair has announced that Ronnie Mathewson will be replacing Luke Lovegrove as its chief commercial officer.
Mathewson was chief revenue officer at Blue Islands – a regional airline of the Channel Islands which recently stopped trading.
“I started my aviation career in Scotland over 25 years ago, so it is an honour and a privilege to return to work in Scotland to lead the commercial function of the UK’s largest and leading regional airline,” he said.
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